The international development organization says this sum will be deployed to support 78 countries that “need it most”.
The World Bank announced that it has raised nearly $24 billion to provide loans and grants to some of the world's poorest countries, which it could leverage to generate a record total purchasing power of $100 billion. of dollars.
Donor countries have committed $23.7 billion to replenish the bank's concessional lending arm, known as the International Development Association (IDA), a World Bank spokesperson told the agency. press release, marking a slight increase from the approximately $23.5 billion pledged over the past three years of fundraising. There is.
The bank can use this money to borrow on financial markets, allowing it to quadruple the amount raised, unlocking around $100 billion in new loans and grants, up from $93 billion in 2021.
“We believe the historic success of this IDA21 replenishment is a vote of confidence and support from donors and clients,” read a World Bank statement, referring to the current financing cycle. of the IDA.
“This financing will be deployed to support the 78 countries that need it most,” World Bank President Ajay Banga said in a separate statement, referring to developing countries eligible for IDA support.
This would, he added, help provide “resources to invest in health, education, infrastructure and climate resilience”, as well as stabilize economies and create jobs.
The World Bank's announcement follows two days of negotiations in the South Korean capital, Seoul, a city still reeling after President Yoon Suk-yeol declared martial law Tuesday evening local time before backtrack under pressure from lawmakers.
IDA has become the largest source of concessional or below-market climate finance, and about two-thirds of all IDA financing over the past decade has gone to supporting countries in Africa, according to the World Bank, an international development organization owned by IDA. by 187 countries.
The IDA replenishment is a crucial part of the bank's operations and takes place every three years, with much of the funding coming from the United States, Japan and several European countries, including the United Kingdom, l Germany and France.
This year, the United States announced in advance that it would commit a record $4 billion in new financing to the IDA, while other countries – including Norway and Spain – have also significantly increased their financial support.
Thirty-five former recipients of IDA aid have transitioned from developing economy status in recent decades, including China, Turkey and South Korea, and many are now donors of the fund.
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